GLENN COOPER: Keynote speaker at the Australia Market Educational Conference

AuTT Header DatesWe are very excited to announce Glenn Cooper (Chairman, Cooper Brewery) as the first of our keynote lineup for AuTT Conference 2015!

speaker_GLENN_COOPERGlenn is the current Chairman of Coopers Brewing, Australia’s largest independent brewing company and named in 2011 as the world’s top family business in 2011. He was until June 2014 the Marketing Director of Coopers. He is also the current Chairman of Australian Made and Australian Grown.

Glenn will be talking on Managing and Growing Your Beer Brand: Specialist Brands Against The Global Breweries.

Glenn held the the responsibility of Marketing and oversaw the launch of numerous beers in the Coopers range, including Dark Ale, Extra Strong Vintage Ale, Mild Ale, Premium Lager, and more recently, Coopers Clear. Glenn will be sharing his insight on management and sales at the 2015 AuTT conference in September.

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AuTT Conference Tickets

 

Australian Craft Beer Market Update June 2015

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The overall beer market in Australia continues to be challenged in volume by wine and cider, with craft beer the consistent savior, albeit off a small base and realistically large enough sustainable volumes enjoyed only by those brands with national distribution.

This is the first part of David’s (Australia Trade Tasting MC) update and outlines the general trend of craft beer in Australia for the half of 2015.  Future posts with detailed insight into the industry will be posted regularly leading up to the conference. Please check back regularly.

Australia has traditionally been a beer drinking nation, however current trends are seeing Wine equaling Beer consumption by 2018 and Cider being the overwhelming fastest growing liquor category. The growth categories in beer continue to be Craft Beer, both in off- and on-premise outlets, however the trends appears to be moving towards off-premise with consumption at home on the rise.

Craft Beer continues to see exceptional year on year double digit growth in liquor stores with 24.2% for local craft and 12.1% for imported craft value growth, from premiumisation with more consumers becoming more discerning with their choices and spend on beer. There is a real opportunity for craft brewers to work with liquor stores to drive sales particularly with events and social media. There is some PR currently for excise tax reform being driven by the Spirits Council for one volumetric tax system.

australia-mapAustralian Bureau of Statistics Beer Volume Year ended 30 June 2009-2014

  • Total Beer Volume -6.7%
  • Full-Strength Volume -7.6%
  • Mid-Strength Volume +16.7%
  • Per Capita 92.37 L p.a. -14.5%

Full strength beer remains the most popular type of beer, accounting for around 75% of all beer in 2013-14”. “Over the past decade we have seen the popularity of mid strength beer (19% of total beer consumed) grow at the expense of low strength beer (5% of total beer consumed). Between 2012-13 and 2013-14 the volume of mid strength beer increased 6.8% while full strength beer increased 0.4%. Low strength beer recorded a decrease (down 9.0%).

The volume of pure alcohol available for consumption in the form of beer increased by 1.0% and wine by 0.2% between 2012-13 and 2013-14. The volume of beer available for consumption increased 1.0% The volume of pure alcohol available for consumption in the form of Ready to Drink (pre-mixed beverages) decreased by 4.3% and spirits by 3.6% during this period. “Across all alcoholic beverages, there were 9.7 litres of pure alcohol available for consumption in 2013-14 for every person in Australia aged 15 years and over,” said Louise Gates from the ABS. “This is the lowest level since the early 1960’s.”

According to data on ‘Apparent Consumption of Pure Alcohol, Beverage type as a proportion of all alcohol from 1961 – 2014, Beer is down to 41%, all other liquor is up – Wine continues to converge to equal beer, now at 37.5% and expected to equal beer by 2018.

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Get inside insight into the craft beer industry and how to position your company to succeed in the competitive marketplace at the Australia Trade Tasting Conference on Sept 1 and Sept 2, 2015.  Learn more about the AuTT Conference here.

 

Looking To Find Wine Importers In Australia?

Finding import partners in Australia to take on your wine brands means first understanding the Aussie market and then targeting the best companies to work with. With no distribution tier restrictions between supplier and retailer like those of the three-tier system, wine distribution in Australia is a lot less complicated than in the US market.  However, determining how to best approach the Aussie market means working closely with teams on the ground and optimizing your brand for success.

Here are a few tips on how to garner attention for your wine brand and forge a successful partnership with Australian wine importers.

Address the Aussie Market

  • Invest in a local design agency
  • Invest in Research (Roy Morgan, Survey Monkey & media readership/subscriber lists for what consumers are the target audience IRi Aztec &LMAA for sales data)
  • Enter your wines in Aussie competitions and trade shows
  • Use authentic branding to tell your story

Understand Australian Distribution System

  • Australia is a 2 tier system
  • Parallel Importing is legal
  • Approximately 14000 On-Premise and 9000 Off-Premise Licensed Retailers
  • Over 40,000 Non-traditional licensed venues (clubs, cafes, restaurants, etc.)
  • Excise as an indirect tax
  • understand COGS, margin and retail pricing to ensure competitive offering
  • Consider local consultant professional
  • Decide on route to market

Sales and Marketing

Offer your importers a detailed marketing plan that shows that you are willing to do everything it takes to make your brand successful in Australia.  This means you need to present a solid outline of the following:

  • social media
  • events, meet the Vintners, dinners, festivals, etc.
  • eNewsletter
  • marketing budget allotment to Australia
  • PR
  • point of sale
  • merchandise
  • Retailer and Distributor Programs (in-store tastings, Buy 10 get 1 free, discounts, samples etc.)

To get you started, here is a List of Australian Wine Importers and their company profiles so you can target the right potential partners.

Echelon Wine Partners
Echelon proudly presents a portfolio of dynamic and innovative wines from some of the world’s finest wine producing regions. Every wine in the portfolio is modern in approach and expresses its origin.

World Wine Estates
World Wine Estates (WWE) is a wine importer and distributor that was established in 1988 as the import and wholesale arm of the Ultimo Wine Centre, Sydney’s famous premier wine retailer. WWE specialised in imported wines, especially French. The current owner and director, James Johnston, joined WWE in 1999. In 2005 by a mutual amicable agreement, WWE became a separate company to Ultimo Wine Centre.

Elite Wine Importers
Elite Wine Importers is currently a small family run business. It first began in 1994 when it was seen that there was a lack of Portuguese liquor products available to those of Portuguese decent and also for those who had travelled to Portugal and were hoping to find a taste of their holiday back here in Australia.

Living Wines
Living Wines is a Wine Importer in Australia of organic, biodynamic and natural wines from small producers in Europe. The wines are always low in sulphur and have no other additives.

Eurocentric Wine Imports
The goal of Eurocentric Wine Imports is to bring Australian drinkers great wine from Europe and European-styled wines from other regions such as New Zealand and South Africa in as good condition as if you drank them at the winery. The company is run by Neville Yates, a former career journalist who succumbed to his passion, embracing a combination of his loves — wine, people and travel. He meets the winemakers in the vineyards and in the cellars, tastes at the source, negotiates good deals, chooses reliable refrigerated transport and delivers to Australia great wines at a reasonable cost through the retailers, restaurants and wine bars you know and trust.

Grand Millesime Wine
Grand Millesime are specialist importers of fine French Wine. They are a young and energetic company who specialize in high quality wines, in particular the wines of Burgundy in France. They have a blossoming portfolio of hand-selected wines, all tasted at the domaine and selected based on quality. They travel to France several times a year to taste and buy and actively search out new, small and exciting producers.

Barrique Fine Wines imports
Barrique Fine Wines imports premium wines from France, with a particular emphasis on Burgundy. It is shipped straight to climate-controlled storage from where they send it direct to our clients’ home, offices, restaurants and bars.

Andrew Guard Wine Imports
Andrew Guard Wine Imports is a specialist importer and merchant of fine wine and spirits. It is owned and operated by Andrew and Kirsten Guard. Based in Sydney, Australia, thay have many years experience in the wine, restaurant and retail trade. The vignerons they represent are amongst the best in the world, producing very fine wines with minimal intervention that are reflective of their origins.

Vintage and Wine
Vintage & Vine is a small specialist importer and wholesaler of wines and spirits based in Sydney and started by Kevin Facey and David Burkitt in 2000.  The producers represented by Vintage & Vine are all chosen on the basis of quality, typicity and value. Quite simply this selection of wines represents not only the wines we enjoy but those that we feel to be among the very best from each region.

Corkscrew Cellars
Corkscrew Cellars is a group of independently owned and operated liquor retailers across Sydney. Being independent means they can provide a more personal approach to servicing your needs.Each store is as individual as the customers they serve and the products and services they provide.

Enoteca Sydney
Enoteca is a Sydney based wine company who import Italian, Austrian, French, German and Hungarian wines. They also sell a select few Australian and New Zealand wines.

Negociants Australia
Negociants Australia has been an importer of the world’s finest wines since 1984 and are proud to represent outstanding family owned wineries from Australia and abroad. Our dedicated and knowledgeable team of wine professionals is committed to the highest levels of customer service and quality representation of the wines that we are honoured to distribute. It is this combination of portfolio and people that makes Negociants Australia one of this country’s leading fine wine merchants.

Four Seasons Fine Wines
Four Seasons Fine Wines seeks to exceed the expectations of customers and principals with knowledge, integrity and service. They aspire to be an industry leading wine distribution company by representing and working with producers who articulate strong regional and quality excellence. These attributes combine to create a premium portfolio with diverse regional representation.

Looking for Aussie Importers?  Exhibit your brand at Australia Trade Tasting and get your brand in front of independent and chain buyers from leading retailers, importers and distributors.  Connect today at AuTT.

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How can you Sell your Wine, Beer, and Spirits in the USA? Here’s A Brief Overview of the 3-Tier System.

USA_Market_Overview

Are you looking for a guide on what it means for your Australian brewery, winery, or distillery to do business in the three-tier sales system in the USA?

The three-tier system was put into place after the abolition of Prohibition to control and regulate the distribution of adult beverages in the USA.  Production, importation, packaging and marketing are all federally regulated. Once federally approved for sale within the USA, further compliance with state distribution laws is necessary for market-entry anywhere in the USA.

The following article examines industry terminology used by suppliers, importers, wholesale distributors and retailers and outlines the role of each tier in the three tier system.

Here are some frequently used terms & abbreviations and their meanings for breweries, wineries and distilleries ready to start contacting importers, distributors and retailers in the USA:

FOB Price– Freight on Board: Supplier’s price (per case). The amount producers will get paid per case for their products. When talking about distributing their brand in their state, suppliers need to be ready by saying, “Its $54 per case FOB (New Jersey) / $4.50 per bottle.” When talking to a potential importer who plans to import their product, the FOB would be quoted as $36 per case FOB (Sydney) / $3 per bottle. If a supplier is picking the international freight tab they can quote $40 FOB (New York Port) to the importer.

On-Premise Retail: Bars, Clubs, Tasting Rooms, Brew Pubs, etc.  Any retail location where beverages are sold for consumption on premise.

Off-Premise Retail: Liquor Store, Chain Store, Box Store, etc.  Any retail location where beverages are sold for consumption off premise.

Call Frequency – How often a distributor rep visits a retail account

Control State – A state where sales are controlled directly by state-run establishments

SRP – Suggested Retail Price: Suggested final offer price to consumers in on-premise and off-premise accounts calculated using assumed mark-up percentages, as determined by market research by the supplier.

PTC – Price to Consumer.

PTD – Price to Distributor.

Margin – Based on sale price, this is usually reported as a profit percentage.

Markup – Based on cost, this is usually reported as a profit percentage.

Dry Shelf:  Retailer shelf that is not refrigerated

DTC – Direct to Consumer:  Any sale of beverage directly from the producer to the consumer.  Typically, this is done by local producers through internet sales, tasting rooms, fan clubs, events, etc.

FET – Federal Exercise Tax

Hand-Selling: The act of promoting and selling your beverage face-to-face.

Programming: Tastings, bottle-necks, marketing campaigns, etc.  Any promotional material you can provide to help market your beverage.

DI – Days Inventory: How many more days of inventory left of a certain product at a distributor warehouse.

Incentives: Coupons, discounts, free cases, give-backs, etc.  Any programs given to help promote sales in the three-tier system.

BTG – By The Glass: Price for beverage, offered by the glass at on-premise accounts.

Frontline Price: Highest listed retail price

Street Price: Lowest listed retail price

Retail Price:  Price listed by retailers to consumers.

 

An Overview of the 3-Tier Sales and Distribution System.

 

Supplier Sales

In this sales tier, the supplier (winery, brewery, distillery, producer, or importer) sets the distributor’s FOB, which is the only price that the supplier has any direct control over.  Suppliers can influence the PTC through give-backs, discounts and promotions, but ultimately the price offered by distributors to retailers (wholesale price) and the PTC is in the hands of the distributor and retailer. Depending on the FOB paid, distributors have a good understanding of what SRP will be for retail accounts and will go-to-market accordingly.

Australian wineries, distilleries and breweries are required by federal law to enlist the services of a registered importer.  Once the product has cleared customs and is state side, the importer and supplier begin marketing the product to distributors.

Instead of soliciting distributors directly, Australian suppliers often engage an agent or consultant company to broker sales and provide marketing support to distributors.  Often, the firm will have importers and distributors that they work with to establish a solid market-entry strategy for new beverages.  These representatives must be fully licensed in the states you are planning on entering.

Even if you plan on selling ‘out-of-state,’ compliance with state laws is a must when working with state importers, brokers, distributors and retailers.   The costs and complexities of compliance vary considerably from state-to-state, so plan market-entry accordingly.

 

Distributor Sales

Once purchased, the distributor warehouses supply until further delivery to retail partners.  Freight, storage, and operating costs, as well as mark-up, will all be added to the wholesale price (note that some states have regulatory mark-up margins).

Even though the supplier does not have overall control of the price offered to retailers, often they are expected to provide incentive programs (tastings, promotional campaigns, etc.) in target markets to help build customer recognition, create a competitive offering and ultimately deplete stock at retail accounts. Both Distributors and consultancy firms will have reps working to help sales for your beverage, but you will need to provide incentive programs to really encourage them to concentrate on your brand.  Beyond incentives for your distribution tier reps, in order for successful market entry you will personally need to employ a team dedicated to support programs at retail accounts.

Some distributors are ‘multi-state’ or ‘national,’ which means their distribution network spans across various states and each branch of their company specializes in compliance for the state they operate in. Depending on the state, some wholesale distributors can also hold import licenses.

Working with national distributors or wholesale distributors with import licenses can sometimes simplify the import process in the three tier system, but it does not mean you will not be required to provide incentive programs, support programs and marketing campaigns to go along with those provided by your distributor reps. No matter what state you enter and with what import and distribution partners, be prepared to build a healthy market for your beverages.

 

Retail Sales

Retail sales are separated into two main account types – on-premise and off-premise. Retailers will buy stock from distributors at the wholesale price where-upon the product will be distributed to the retail store for further sale to the consumer.  Each state regulates retail sales and each set of laws, licenses and taxes, for both on-premise and off-premise accounts, varies from state-to-state considerably.

Chain and box stores often receive the best pricing and volume deals (incentives) from wholesalers while independent retailers work hard to market their offerings (variety, POP, POS, support programs, etc.)  Depending on what type of distributor you are working with, you will need to be able to service the type of retail partners they work with.

Independent retailers typically need to price their offerings higher (approximately 25%-50% margin) because they are unable to sell at the volume that Chain and Box stores (20%-45% margin) can.

Breweries, Wineries, Distilleries and Suppliers often have a SRP that they want to see as a final listing price at the retail level, but they seldom have any direct control over the final PTC.  Depending on any discounts, incentives, % mark-up, compliance factors, programming, marketing, and promotional campaigns that has gone into getting the product to market, the retail price can be dramatically different from that of a supplier’s initial SRP.

On-premise retail accounts are usually limited to selling to consumers by-the-glass, or by the bottle, and for consumption at their establishment only. Some states allow on-premise accounts to sell to consumers for off-premise consumption and some even allow securely sealed, opened bottles to leave the premise.  Support programs (promotional give-aways, merchandising, etc.) are also highly encouraged to build customer bases at important on-premise locations.

Depending on state laws, some wineries, breweries , distilleries and suppliers can sell direct-to-consumer (DTC).  This is often limited to producers selling directly to consumers at tasting rooms and brew pubs or at events, but DTC internet clubs directly associated with the producer are very popular in states where it is permitted.

For a good pricing overview for the USA market, please read Three Tier System and Pricing Overview for USA Market 

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Are you a winery, brewery or distillery looking to export your beverages to the USA?  Come network at Australia Trade Tasting and grow your brand.

The Perfect Summer Cider for the Heat Down Under: Profiling Australia Trade Tasting exhibitor Sidra Del Verano.

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Australia Trade Tasting exhibitor Sidra del Verano Summer Cider

Australia Trade Tasting interviews Anne Sequeira, Managing Director of Conquistador Brand Management Sidra Del Verano, on the family story behind Sidra Del Verano.

With it’s simple characteristic label and smooth, sweet taste, experience Sidra Del Verano Cider and you know that they’ve captured the essence of Australian Summer. They don’t pretend to be from down under, in fact they’re the first to state proudly that their apples are from the Basque region in Northern Spain and that their secret family recipe has been perfected over five generations, but they certainly know how to make a cider that’s the perfect choice for a hot summer’s day.

With a great fruity supporting brand line-up (Mango & Passionfruit, Blackcurrant & Cranberry, and Peach & Apricot) to go along with their traditional Spanish Apple Cider, Sidra del Verano labels are easy to drink, refreshing, and tap into a premium market for those consumers who want something special for their afternoon’s delight. We caught up with Anne Sequeira to follow along as they continue to gain momentum in Australia.

1.  What inspired Sidra Del Verano?  What is the story behind your name?

Well, Verano is made using an old recipe that has been handed down over 5 generations in the Soroa family.  Due to the product’s extremely light and refreshing nature, the recipes were produced as a summer batch for the local community in San Sebastian to enjoy during the long hot afternoon and evening of summer. Hence when we decided to  re-package this product and sell it  globally, the name “Sidra Del Verano” translating directly to “the summer Cider” was perfect.

2. When did the product launch in Australia? What has been the reponse?

Verano launched in Australia in January 2014 and has had an outstanding reponse by consumer and the trade. The product is ranged Nationally in Dan Murphy’s and also in some premium BWS stores. It is also in over 100 on-premise venues in Sydney and Melbourne. Consumers love the natural and easy drinking taste.

3.  What branding, strategy, etc. are you guys going to be highlighting at Australia Trade Tasting?

First and foremost, we want the trade to taste Verano and see for themselves the superior quality versus those of competitors. Secondly, we want the Australian trade to know that Australia is an important market for Verano and that we will be investing heavily over the next 5 years. Lastly, we will take the trade through our marketing plans which include event sponsorship, social marketing and “word of mouth” marketing.

4. How is Sidra Del Verano different to other products?

It is made from 100% freshly crushed CULINARY apples. It is the use of fresh culinary apples, as opposed to the traditional “bitter sweet” apples, that gives Verano its natural sweetness.

5.  What’s next for Sidra del Verano?

In Australia, it’s a big focus on building the brand in the on-premise to reinforce it’s premium image and gain trail. Moreover, we will be focusing on event sponsorship, social marketing and working on the ground trying to get our brand recognition up through word of mouth.

Today, Verano cider remains a Soroa family-run business, only now they export their refreshing, easy-drinking cider to over 60 countries worldwide. Sun, rain, wind, soil, passion. Verano is a cider born out of tradition and the spectacular, often rugged countryside of the Basque region.  It’s a great story about dedication to quality and tradition that has found it’s way from the northern reaches of Spain all the way to the Australian Outback.

Are you a winery, brewery, or distillery looking to expand your distribution in Australia? Exhibit and connect with leading importers and distributors at Australia Trade Tasting.

Australia Trade Tasting